Sunset Strip | Aussie market continues the recovery from fair value (i.e
Sunset Strip | Aussie market continues the recovery from fair value (i.e. after OPEC carnage) despite local macro risks looming in the next few weeks. OPEC followed the path of the big Iron Ore miners and decided to maintain the oversupply to kill of the marginal high cost producers in US Shale, push up the cost of alternative energy and drive Russia into recession. More negative local data after RBA leaving rates unchanged has more and more economists changing their forecast to rate cuts / high unemployment in 2015...like what we have been saying for a number of months. Despite the short term government risk with tax white paper, financial sector inquiry and mid-year budget update expected in the next few weeks, we are positive as the market bounces off fair value after pricing in very low local growth outlook. Historically, recovery from fair value after a pullback has been a positive trend for the market. (VIEW LINK)
Over 25 years’ experience in the finance/tech industry. Mathan has worked extensively in all parts of the finance sector (i.e. County NatWest, Citi, LIM, Southern Cross, Bell Potter, Baillieu Holst and Blue Ocean Equities). Currently Founder and...